Synergy CHC Corp., a publicly traded consumer health company based in Sebago, Maine, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Columbia. The company markets Focus Factor, a brain health supplement and functional beverage line with a 25-year operating history, along with the Flat Tummy wellness brand. Focus Factor products had been distributed through major retailers including Walmart, Amazon, BJ’s, and Walgreens across the U.S., Canada, and Mexico.
The company’s financial decline accelerated following notification on July 15 that Costco Wholesale Corporation would discontinue carrying Focus Factor products. Costco had been a significant customer for more than 16 years and represented approximately 58% of the company’s net revenue during the fiscal year ended December 31, 2025. The company stated in an SEC filing that it expected Costco’s decision to have a material adverse effect on its business, results of operations, liquidity, and financial condition. Costco did not provide a stated reason for the discontinuation.
Additional regulatory pressures contributed to the company’s difficulties. On August 20, Synergy CHC received notice from The Nasdaq Stock Market indicating non-compliance with listing rules due to delayed filing of its Quarterly Report on Form 10-Q for the quarter ended June 30. That notice prompted ACP Agency, LLC, the agent of the company’s lender, to send an Acceleration Notice. The bankruptcy petition identified assets between $1 million and $10 million, with liabilities between $10 million and $50 million.
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